Promoters bought 13,70,001 shares: Multibagger penny stock below Rs 50; Shop has been set up to manufacture steel billets!
The stock is up by 28 per cent from its 52-week low and has given multibagger returns of over 1,300 per cent in 5 years.
Rathi Steel and Power Limited announced the re-commencement of commercial operations at its Steel Melting Shop located in Ghaziabad, Uttar Pradesh, effective April 29, 2025. This development follows their earlier intimation dated April 15, 2025, and is disclosed in compliance with Regulation 30 and Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The Steel Melting Shop has been established for the manufacturing of steel billets, marking a significant step in the company's operational activities.
Additionally, Rathi Steel and Power Limited has received BIS approval to include 8 mm diameter SS 550 and SS 500 reinforcement bars under their existing license, allowing them to mark these products as compliant with Indian standards for high-strength deformed stainless steel bars. This significant development enables Rathi Steel to now manufacture the complete range of SS 550 and SS 500 bars from 8 mm to 32 mm, allowing for better utilisation of their facilities to meet growing market demand and reaffirming their commitment to quality until their license expires on February 1, 2026.
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About the Company
Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel-related products. The company specialises in stainless steel products like Wire Rods, flats etc., which are primarily used in infrastructure, engineering, and household applications. Rathi operates a plant in Ghaziabad, UP, with an installed capacity of 2,00,000 tons per annum or rolling capacity. The Company also operates a steel melting shop with an installed capacity of over 90,000 tons per annum to manufacture stainless steel billets.
According to Quarterly Results, the net sales increased by 3.2 per cent to Rs 104.43 crore and the net profit decreased by 32 per cent to Rs 0.79 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales decreased by 6 per cent to Rs 353.59 crore and the net profit increased by 199 per cent to Rs 10.16 crore in 9MFY25 compared to 9MFY24
The stock’s 52-week high is Rs 97.81 per share while its 52-week low is Rs 24.50 per share. The promoters of the company bought 13,70,001 shares in March 2025 and increased their stake to 41.30 per cent compared to December 2024. The stock is up by 28 per cent from its 52-week low and has given multibagger returns of over 1,300 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.